What is Goods Carrying Vehicle Insurance?


12 February,2024


28 February,2024

understanding goods carrying vehicle insurance

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    A country's economy mainly depends on the transportation of good, and goods carrying vehicles are the backbone of this process. But these vehicles can, at times, experience unfortunate accidents due to strenuous journeys. So, having a goods carrying vehicle insurance is essential to cover the vehicles against unforeseen events. Get to know about goods carrying vehicle insurance and its types here:


    An Overview of Goods Carrying Vehicle Insurance

    A commercial vehicle that is primarily used for transporting goods to various places for commercial purposes is called a goods-carrying vehicle. A goods carrying vehicle insurance policy provides coverage to the insured vehicle when it gets damaged due to unforeseen accidents. Opting for a well-structured plan can protect the policyholder from unfortunate incidents like accidents, floods, theft, fire, riots, storms and so on.


    Different Types of Goods Carrying Vehicles

    There are different types of goods carrying vehicles that are eligible for insurance. They are as follows:

    • Three-wheeler Cargo Autos/Tempos

    Short-distance delivery of goods is often handled by three-wheeler tempos or cargo autos. They are used for local deliveries of goods due to their relatively small size. To guarantee coverage for three-wheelers, you can get a goods carrying insurance policy.

    • Four-wheeler Pick Up Van/Tempos

    Four-wheeler pickup vans or tempos are bigger than three-wheeler tempos. Business owners can insure these kinds of vehicles with commercial goods insurance for tempos.

    • Trucks

    Trucks are mostly used to transport bulk goods and are available in various sizes and shapes. Business owners can choose goods carrying vehicle insurance for trucks according to the size and capacity of the truck.

    • Tippers

    Tippers are goods carrying heavy vehicles that are often used for transporting construction goods. As they move from one city to another with heavy goods, they are prone to accidents or breakdowns. So, covering tippers under goods carrying vehicle insurance will give owners peace of mind.

    • Trailers

    Trailers are large vehicles often used to transport large-size goods. They are often used across the country for transporting heavy goods, which makes it almost mandatory to get goods-carrying vehicle insurance.


    Types of Goods Carrying Vehicle Insurance

    Comprehensive Goods Carrying Vehicle Insurance and Third-party Goods Carrying Vehicle Insurance are the two major types of goods vehicle insurance:


    1. Comprehensive Goods Carrying Vehicle Insurance 

    Commercial goods carrying vehicle insurance ensures robust insurance coverage. It combines Third-Party Coverage, Own Damage Coverage, and Compulsory Personal Accident (CPA). To protect you against unforeseen events, consider buying commercial goods carrying vehicle insurance with carefully chosen add-ons. Here are the coverages under Comprehensive Goods Carrying Vehicle Insurance.

    • Natural Disasters

    Comprehensive Insurance Policy acts as a protector against the unpredictable forces of nature. Damages arising from floods, storms, landslides, earthquakes, hailstorms, lightnings are covered.

    • Fire

    Fires can inflict substantial damage on the goods carrying vehicles with powerful engines. Comprehensive Goods Carrying Vehicle Insurance protects you against these losses and also helps you save significantly during such adversities.

    • Theft

    The extensive travel undertaken by goods carrying vehicles on distant, unfamiliar roads heightens the risk of theft, larceny, or break-ins. A Comprehensive Goods Carrying Vehicle Insurance plan provides compensation in the unfortunate event of theft.

    • Third-Party Liabilities

    Comprehensive Goods Carrying Vehicle Insurance extends its protective umbrella to cover third-party liabilities. Harm to third-party individuals, along with damages to their vehicles or property, is covered under this insurance.

    • Additional Protection with Add-ons

    Increase your financial protection by opting for add-ons that suit your needs. This adds an extra layer of security in goods carrying vehicle insurance policy.


    2. Third-party Goods Carrying Vehicle Insurance

    In accordance with the Motor Vehicles Act of 1988, it is a legal requirement to get basic Third-party Insurance Coverage for any vehicle intended for operation on Indian roads. This mandate extends to goods-carrying vehicles. Third-party Goods Carrying Vehicle Insurance covers the insured vehicle from third-party liabilities. The coverage of this policy include:

    • Damages to Third-Party Vehicles

    Third-party Goods Carrying Vehicle Insurance covers damages occurring to the vehicles of third parties during accidents caused by the insured goods carrying vehicle.

    • Bodily Injury and Death of the Third-Party

    In accidents where the insured vehicle causes bodily harm or results in the unfortunate death of a third party, the liabilities arising from these incidents are covered under Third-Party Goods Carrying Vehicle Insurance.

    • Damage to Third-Party Property

    Accidental damage to third-party property by the insured vehicle prompts the insurer to provide compensation up to a specified limit.


    What Goods Carrying Vehicle Insurance Does Not Cover?

    To avoid any surprises when you file a claim, it is equally important to understand what is not covered by your goods-carrying vehicle insurance policy. Here are a few policy exclusions that you should be aware of.


    Exceptions to the Policy:

    1. Consequential loss, depreciation, wear and tear, mechanical or electrical breakdown, failures or breakages, or damage caused by overloading or strain of the insured vehicle, or loss of or damage to accessories by burglary, housebreaking, or theft unless the insured vehicle is stolen at the same time.


    2. Any accidental loss or damage suffered while the insured or any person driving with the knowledge and consent of the insured is under the influence of intoxicating liquor or drugs.


    General Exceptions:

    1. Any accidental loss or damage and/or liability caused outside the geographical area.


    2. Any claim arising out of contractual liability.

    3. Any accidental loss, damage, and/or liability caused while the vehicle insured herein is being used otherwise than in accordance with the ‘Limitations as to Use’ or being driven by any person other than a Driver as stated in the Driver's Clause.


    4. (a) Any accidental loss or damage to any property whatsoever, any loss or expense resulting from it, or any consequential loss.

    (b) Any liability caused by or contributed to by ionising radiations, contamination by radioactivity, nuclear fuel combustion, or nuclear waste.


    5. Any accidental loss, damage, or liability caused by nuclear weapons material.


    6. Any accidental loss, damage, or liability caused by war, invasion, the act of foreign enemies, hostilities or warlike operations, civil war, mutiny, rebellion, military or usurped power, or any direct or indirect consequences of these occurrences unless proven otherwise to the Company's satisfaction.



    Are you looking to buy or renew a goods carrying vehicle insurance to lower your business risk and potential losses from unexpected accidents? Shriram General Insurance offers affordable Comprehensive Goods Carrying Vehicle Insurance and Third-Party Goods Carrying Vehicle Insurance. To learn more about goods carrying vehicle insurance, you can visit the Shriram General Insurance online site.



    1. What are the differences between goods-carrying vehicle insurance and commercial vehicle insurance?

    Various factors that are specific to vehicles carrying goods are kept in mind while designing insurance policies for goods-carrying vehicle insurance. Commercial vehicles are different from goods-carrying vehicles and have different functions, and the risks vary. So, there is a difference between these two types of vehicles.


    2. Will the goods carrying vehicle insurance cover the goods present in the vehicle as well?

    No, usually, the goods carrying vehicle insurance does not cover the goods transported in the vehicle. The coverage is only extended to the vehicle, the drivers and/or employees as per the insurance plan.


    3. What will be the cost of goods carrying vehicle insurance?

    The cost of goods carrying vehicle insurance depends on various factors like the type of goods, the city in which it operates, and more. For more information, you can visit Shriram General Insurance's online site.

    Ensure Smooth Functioning of your Business with Shriram Goods Carrying Vehicle Insurance

    Ensure Smooth Functioning of your Business with Shriram Goods Carrying Vehicle Insurance

    Ensure Smooth Functioning of your Business with Shriram Goods Carrying Vehicle Insurance

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